EC accounting directive: What you need to know

Accounting body Fédération des Experts-comptables Européens (FEE) has published a guide to the European Commission's 2013 accounting directive, which intends to cut red tape for small businesses.

While it could have significant implications for how small businesses prepare their accounts, Nick Huber has provided summary of the guide.

What is it?

A single accounting rule for company accounts – single and consolidated. It updates and combines the “fourth directive” for single company accounts, which was introduced in 1978, and the “seventh directive” for consolidated accounts (1983).

The European Commission (EC) said the new directive will be simpler than the old rules and will reduce administrative costs for businesses in the European Union (EU). It also aims to improve the quality of information in financial statements and make them easier to compare.